Skanska buys McNicholas Plc for £50m

Skanska UK has bought street works contractor McNicholas Plc (Brown Macs) for £50m.

McNicholas, which had a revenue of £150m in 2005, will be merged with Skanska UK’s existing Utilities Operating Unit. 

Headed up by Stewart Keeble, the combined business will deliver annual revenue of over £300m.

Skanska UK chief executive David Fison said: “The acquisition of McNicholas is part of our strategy to grow and develop our UK utilities and infrastructure services business.

"We know McNicholas well and have developed an excellent working relationship through our successful joint venture undertaking the gas distribution mains replacement programme for National Grid in the north London area.

“The company is a long established contractor with a strong position in highways maintenance, power, gas, water and rail projects in London and the South East and I am delighted it is  now part of the Skanska family.”

Michael Doherty, managing director of McNicholas, said: “The integration of our businesses is very positive for both customers and employees.

"The coming together of Skanska and McNicholas will allow us to accelerate our strategic plans, to broaden our solutions and build a service-offering which very few competitors will be able to match.”